December 23, 2008

Sold It Yesterday?

With plummeting sales in cars this year it would seem that perhaps the excess capacity which caused some manufacturers to pile on the incentives in order to move the metal was hurting sales now because buyers who would’ve waited bought earlier due to the incentives.

But the R.L. Polk study mentioned in this article would seem to indicate otherwise. People are keeping their cars longer and not needing new ones as much as before.

That’s one more reason why the Detroit 3 and many other companies need to reduce capacity to get things back in line, balance supply and demand. Because as we’ve seen with the current situation it couldn’t last and now there’s going to be a lot of pain all around.